Nvidia shares fall 3.78% while Apple is once again the most valuable

The world leader in chips and software for AI systems reported that, for the moment, it does not plan to make this technology, known as Fugatto (acronym for Foundational Generative Audio Transformer Opus 1), accessible.

But with this announcement, Nvidia joins the initiatives of startups like Runway and large companies like Meta, which have already developed tools to generate audio or video from text. However, the stock market did not receive the news so positively, as the semiconductor company recorded a loss in its shares of 3.78%, its worst performance in three weeks.

According to the South China Morning Post, China’s Vice Minister of Commerce, Wang Shouwen, held a meeting with Jay Puri, executive vice president of global field operations at Nvidia, on November 25. During the meeting, Puri emphasized the relevance of the Chinese market for the company, while Wang Shouwen highlighted the opportunities that China offers to foreign companies, encouraging Nvidia to strengthen its presence in the country, according to a statement.

The context of the meeting includes the imminent intensification of US restrictions on the Chinese semiconductor industry, which could be announced in the coming days. In addition, Donald Trump’s announcement about an extra 10% increase in imports from China, plus the extra tariffs that he proposes to impose on Canada and Mexico will move the world’s markets.

Joe Biden’s administration still plans to impose a new round of limitations on exports to China, with regulations that could put up to 200 Chinese chip companies on a trade blacklist, according to Reuters. Additionally, it is anticipated that more restrictions on shipments of high-performance memory chips to the Chinese market will be announced in the coming weeks.

Investors appear to be reacting to these risks, increasing uncertainty in the market. Given this situation, Nvidia faces the challenge of meeting the high expectations that have been established. Wall Street projects 54% revenue growth for the company in 2025, but any setbacks or uncertainties could significantly impact its stock performance due to these lofty expectations.

Added to this is the competition with Apple for the title of the most valuable company in the world, with both companies reaching market valuations close to $3.5 trillion.

Information from Reuters and Invest.com